Wall Street strategists have identified a pattern they’re calling the “debasement trade” as investors seek protection against economic turbulence. According to reports, this approach involves buying hard assets while reducing exposure to currencies and government debt as concerns mount over budget deficits and inflation.
Understanding the Debasement Trade Phenomenon
Financial markets have developed what analysts are calling the “debasement trade,” a strategy reportedly gaining popularity among Wall Street investors seeking protection against economic uncertainty. According to sources familiar with market dynamics, this approach emerges from concerns about persistent inflation, growing budget deficits, and the potential diminishing dominance of the U.S. dollar in global markets.